Tuesday, November 8, 2011

Dr. Housing Bubble takes on hyperinflation


Speaking of hyperinflation, Dr. Housing Bubble addresses it in housing.
I’m not sure why a few are looking at real estate as some safe haven from hyperinflation.  Do they even know what hyperinflation looks like?  Let us set aside the reality that since the crisis hit with a full frontal attack and the bubble popped in 2007 we have been living through a debt destruction deflationary period.  All the Federal Reservegimmicks and banking bailouts, trillions of dollars of digital funds, have largely gone to the financial sector with little relief to households.  The data is rather clear and what we have seen is a shattering of household net worth primarily with real estate while bailout funds have gone to plaster over the Swiss cheese like balance sheet of banks.  As absurd as the hyperinflation argument is, I think it is worth examining as a thought experiment what may happen to U.S. real estate going forward under various scenarios.... (emphasis added)
Read the rest at Housing apocalypse prediction of hyperinflation and real estate values – Debunking the hyperinflation argument to purchase housing. Examining real estate in deflation, inflation, and hyperinflation.

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